Hello everyone,
Recently I am working on a stochastic 3-period OLG model with educational choices.
I have obtained all the FOCs and tried to do stochastic simulations to analyze
how fluctuations in TFP affects the optimal choices of time spent on education.
While I was doing that, I encountered an error message saying "Blanchard & Kahn conditions are not satisfied: indeterminacy. "
Could someone check the error in my attached .mod file and help me out with this?
Thank you so much in advance.hcjeyoung_test.mod (1.8 KB)